Warren Buffett is arguably the world’s best investor, making his billions through his strong knowledge of the market, and wise decisions for the fund he manages. As Berkshire Hathaway’s CEO, he made market-beating investment choices and is lauded as an investment king by many in Australia and all over the world. Understanding investing, business tax, and profiling companies; Warren knows how to do it! If you want to be like Warren and make the most of investing opportunities, follow the steps below.
1. Long term is key
With Warren Buffett saying you should hold a stock “forever,” it is no wonder he is a fan of the long approach. This doesn’t mean you should never sell a share – it just means you shouldn’t be looking for quick wins.
Berkshire created an annual growth of 20.3% under Buffet’s tenure. The fund ended last year, having outperformed the S&P 500 index by roughly 2,700,000% since Buffett took on the role in the company.
2. Look for high-quality businesses with competitive advantages
If you are looking for long term investments, you want to focus on competitive advantages and know where the world is going. Buffet famously said, “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
3. Don’t buy cheap stocks
While buying cheap stocks can sometimes result in big wins, it is hard to replicate these wins. It is better to invest in solid companies with a buy-to-hold approach.
How an accountant can help
Believe it or not, your accountant has some helpful investment tips, and advice on business tax and how to utilise your investments wisely. Consider reaching out to Accountant 2 Business to discuss your plans today.
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The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our local Brisbane accountants to discuss your particular needs. Accountants 2 Business Ph (07) 3823 2344
